Late Items Agenda of Ordinary Council Meeting

Late Items Agenda

Late Reports

CP10-05/16 Yanchep District Active Open Space Sports Amenities Building - Project Update

File Ref: 6443 – 16/166708

Responsible Officer: Director Community & Place

Disclosure of Interest: Nil

Attachments: 3

Previous Items: CD02-08/14 - Ordinary Council - 19 Aug 2014 7:00pm

CP-04-03/16 - Ordinary Council - 01 Mar 2016 7.00pm

Issue

To consider the current status of the Yanchep District Active Open Space – Sports Amenities Building project and proposed funding model to support the delivery of the project.

Background

At its meeting held on 1 March 2016, Council considered report CP04-03/16 Yanchep District Active Open Space Sports Amenities Building. This report considered an increase in the size of the proposed multi-purpose space within the Yanchep District Active Open Space – Sports Amenities Building (the Building). As a result, Council resolved the following:

“That Council:-

1. SUPPORTS IN PRINCIPLE for inclusion in the draft revised cost apportionment schedule for the Yanchep Two Rocks Development Contribution Plan, the increase from 100m² to 150m² of the multi-purpose room within the Yanchep District Level Active Open Space Sports Amenities Building due to:

· District function of the active open space

· Multi-purpose function of the building for both sport and the community

· Status of Yanchep as a fast growing primary activity centre;

2. NOTES the DCP review process will consider changes in scope to the Sports Amenities Building at YAOS, including both the increase in total building size and increase in multipurpose space; and

3. THANKS the following Clubs:

· Yanchep Little Athletics Club

· Yanchep Junior Football Club

· Yanchep Redhawks Cricket Club

· Yanchep Redhawks Football Club

for their input during the consultation phase”.

Currently both this project and the Yanchep Active Open Space Playing Field Project are subject to a Community Sport and Recreation Facilities Fund (CSRFF) grant, provided by the Department of Sport and Recreation. The specific grant detail are as follows:

Grant No.

Project

Project Cost (1)

Approved Grant

Approved Year

C10052/2010/1265

PR-2253 Yanchep District Open Space Sports Amenities Building

2016/17 Budget - $5.1M

$2,318,000

$770,333

2011

C10970/2012/1075

PR-2072 Yanchep Active Open Space (Playing Fields)

2016/17 Budget - $3.688M

$2,158,815

$975,000

2013

Notes

(1) The project cost listed is the total of those elements within the project which are applicable for CSRFF grant funding only.

Administration has been working with the Department of Sport and Recreation in respect to the existing project delays and the impact on the grant. Despite this, there is an increasing risk that further delay to either project may jeopardise the grants, which have already been extended with the Department due to previous project delays.

Administration is due to meet with the Department of Sport and Recreation by Monday 23 May 2016 to provide an update on project timeframes, with a view to secure the grants, given the timeframes for tender and project commitment by Council.

Detail

Sports Amenities Building (PR-2253)

The confirmed scope of the Building is as per the table below:

Element	Description
Changerooms	4 x Changerooms at 45m² and 2 x Changerooms at 46m²
Storerooms	1 Chairs Store (10m²), 2 storerooms at 20m², 2 Storerooms at 21m² and 1 Storeroom at 30m²
First Aid Room	15m² first aid room
Umpires room	22m² includes 2 showers and toilet facilities
Male & Female Toilets	Male and female toilets that are separate facilities from changerooms and a separate universal access toilet (45m²). These facilities will service the reserve hirers.
Multipurpose Room	120m² Multipurpose Room and 30m² Meeting Room. These rooms can be combined to form 1 x 150m² Function Room
Kiosk	25m²

The scope outlined in the table above differs slightly to that presented to Council at its meeting held on 1 March 2016 (report CP04-03/16), in that the following amendments have been identified as a result of Administration’s design and project cost review. In doing so, it is important to be cognisant of the City’s Draft Community Facility Standards and the community consultation process undertaken and subsequent input into the building design.

Design Change	Description
Bin Store	Removal of Bin Store (3m²)
Kitchen / Kiosk	Removal of Kitchen Store (15m²) and reduction of Kiosk size (less 3m²)
Roof	Simplification of roof design and reduction in roof size by 901m²
Retaining Walls and Stairs	Removal and to be placed within landscaping budget (subject to final landowner agreement).
Concrete paving	Reduction of concrete paving by 565m²
Brick Paving	Removal.
Landscaping	Removal and to be placed within landscaping budget (subject to final landowner agreement).

The reduction/removal of the items identified within the table above is minor in nature and will have nil impact on the overall functionality of the building, and maintain a design which his consistent with facility standards and consultation outcomes.

Attachment 1 provides a conceptual illustration of the proposed building floor plan, noting that the amendments listed above need to be included within the Concept Plan.

Yanchep Two Rocks Developer Contribution – Technical Advisory Committee

Administration met with the Advisory Committee on two occasions since Council’s consideration of report CP04-03/16 at its meeting held on 1 March 2016. A copy of the respective Agenda and Minutes of each meeting are provided within (Attachment 2) and (Attachment 3).

In respect to the discussion of the Sports Amenities Building, the following key points were highlighted:

· Administration noted that the cost of the building was high and that further review of design and costs was required to bring the project down to a reasonable cost for both the City and Landowners (the project cost was estimated at $4.1M prior to the cost review exercise); and

· In doing so, maintaining a functional facility cognisant with the district nature of the playing fields was of paramount importance;

The discussions also noted that:

· The Yanchep Two Rocks Developer Contribution Plan is currently under review:

· Endorsement of the DCP by Council in 2015 included estimated facility costs, which supported the current cost contribution amount; and

· As the estimated costs are projected to increase, this will necessitate consultation with affected landowners prior to revised DCP being adopted.

In respect to the “Remove Retaining Wall & Stairs” and the “Landscaping” items, Administration has proposed to the Advisory Committee that these items be removed from the Building Project and included within the Yanchep Active Open Space Playing Field Project. This is on the basis that both items are considered to be part of the playing field functionality as opposed to the building functionality. This was noted for further consideration by the Advisory Committee.

As a result of Administration’s concept and cost review, the following cost savings were identified based on the design changes noted above.

Design Change	Description	Cost Saving
Bin Store	Removal of Bin Store (3m²)	$5,505
Kitchen / Kiosk	Removal of Kitchen Store (15m²) and reduction of Kiosk size (less 3m²)	$33,030
Roof	Simplification of roof design and reduction in roof size by 901m²	$350,000
Retaining Walls and Stairs	Removal and to be placed within landscaping budget (subject to final landowner agreement).	$160,000
Concrete paving	Reduction of concrete paving by 565m²	$80,000
Brick Paving	Removal.	$29,500
Landscaping	Removal and to be placed within landscaping budget (subject to final landowner agreement).	$35,000
	Total	$693,035

As a result of the cost savings identified above, the total project cost for the building has been revised down to $3.4M.

In respect to the revised funding model for the project, the following table provides a summary of the original DCP funding model and a proposed Option A and Option B in respect to final funding models. The key difference between the two options is that Option A seeks an increased Developer contribution of $1,959,102 as opposed to Option B that maintains the Developer contribution to the currently agreed level.

Original DCP (as at April 2015		Option A	Option B
Total Cost	$1,930.402	$3,400,000	$3,400,000
Developer (loan)	$1,438,149	$1,959,102	$1,438,149
DSR Grant	$0	$770,333	$770,333
City of Wanneroo (Municipal)	$492,253	$670,565	$670,565
City of Wanneroo (Strategic Project Reserve)	$0	$0	$520,953

Given the position of Landowners at the most recent Advisory Committee meeting held on 13 May 2016, in which they did not support any further increase in Landowner contributions above the agreed 2015 levels, it is the view of Administration that Option B is the most appropriate way forward.

As a result, this report will recommend, amongst other things, an increase in the municipal funding component of the project to $670,565 and the drawing of $520,953 from the Strategic Project Reserve to fund the balance of the project.

Updated Project Schedules

In this respect Administration can advise that the Yanchep Active Open Space (Playing Fields) project (PR-2072) is scheduled to be put to tender on 17 June 2016, with the outcomes to be reported to Council on 16 August 2016.

In respect to the Sports Amenities Building (PR-2253), it is anticipated that the tender for this project will be advertised to the market on 15 June 2016, with a subsequent report to Council on 13 September 2016. It should be noted however that this timeframe is still to be finalised and may be subject to further amendment.

In this respect, the key milestones for the Sports Amenities Building which Administration is aiming to achieve are currently as follows:

Project Phase	Timeframe
Concept Design	December 2015 – March 2016
Detailed Design/Documentation	March 2016 – June 2016
Tender Advertising and Evaluation	July 2016 -September 2016
Construction	October 2016 – September 2017
Practical Completion (Handover)	October 2017

Consultation

Consultation with Landowners has occurred via the Yanchep Two Rocks Developer Contribution – Technical Advisory Committee, as outlined within this report. Consultation also occurred with relevant sporting clubs as outlined within report CP04-03/16.

Comment

The Yanchep Active Open Space is a key facility in meeting the current and future needs of the community within the Yanchep and Two Rocks areas. As such, it is important that the facilities provided meet the overall needs of the community, are provided in a manner consistent with those needs and the City’s facility provision standards, and also take into consideration future provision within the corridor.

As outlined within report CP04-03/16, Administration is of the view that the proposed Sports Amenities Building as per (Attachment 1), and taking into consideration the design changes noted within this report, will adequately meet the needs of the community both now and into the future, and do so on a cost effective basis. Administration is also of the view that any further reduction in the scope of the building or staging of the building to further reduce the project budget are not feasible from both a functional and project delivery perspective.

Statutory Compliance

The Yanchep District Open Space and associated Sports Amenities Building are listed in the City’s District Planning Scheme No. 2 (DPS 2) as infrastructure items to be funded through the Yanchep Two Rocks Development Contribution Plan (DCP). This means that the City can collect financial contributions from developing landowners within Yanchep Two Rocks towards the cost of this facility, in accordance with the cost apportionment schedule endorsed by Council in April 2015.

The cost contribution amount paid by developers is required to be based on estimated construction costs, until such time as actual amounts have been expended towards the construction of the facility. All cost estimates are required to be reviewed on an annual basis as part of a regular review of the DCP.

If the review of estimated costs recommends that the estimated costs be increased (as is currently proposed), the City is required by DPS 2 to notify affected landowners in writing and seek comment on the proposed increase for a period of no less than 28 days. The City is required to consider any submissions received before deciding whether or not to increase the cost estimates.

Administration has engaged with landowners on the annual DCP review through the Yanchep Two Rocks Development Contribution Plan Advisory Committee in April and May 2016 and has discussed the cost estimate for the Building. It is not necessary to formally notify affected landowners at this stage as the final implications on the cost contribution are yet to be determined and are subject to other factors.

Making a decision on the funding model for this facility will inform the DCP review currently being finalised. Should Option ‘B’ be supported by Council, it would not result in an increase to the portion of the project funded by the DCP, and would be consistent with the recommendation of the Yanchep Two Rocks Development Contribution Plan Advisory Committee.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2013 – 2023:

“2 Society - Healthy, safe, vibrant and active communities.

2.1 Great Places and Quality Lifestyle - People from different cultures find Wanneroo an exciting place to live with quality facilities and services.”

Risk Management Considerations

The following risks relating to the issue contained within this report have been identified and considered within the City’s Strategic and Corporate risk registers. Action plans have been developed to manage this risk to improve the existing management systems.

Risk Title	Risk Rating
ST-S04 Integrated Infrastructure & Utility Planning	Moderate
Accountability	Action Planning Option
Executive Management Team	Manage

Risk Title	Risk Rating
ST-S23 Stakeholder Relationships	Moderate
Accountability	Action Planning Option
Chief Executive Officer	Manage

Policy Implications

Consideration of the amenities provided as community infrastructure to support community needs has implications in this case relevant to the Yanchep Two Rocks Development Contribution Plan.

As previously advised in report CP04-03/16, planning for new community infrastructure, in particular in the northern growth corridor, has necessitated a review of the City’s standards for community facility provision, which is currently underway to guide future planning provision.

Consideration of City of Wanneroo Local Planning Policy 4.3 – Public Open Space is also relevant in consideration of this item in respect to public open space provision and development.

Financial Implications

As a result of the cost savings identified above, the total project cost for the building has been revised down to an estimated $3.4M. As a consequence of this and the confirmed position of landowners in respect to maintaining their current level of funding for the project, this report will seek Council’s support for Option B, as outlined below.

Original DCP (as at April 2015)		Option B
Total Cost	$1,930.402	$3,400,000
Developer (loan)	$1,438,149	$1,438,149
DSR Grant	$0	$770,333
City of Wanneroo (Municipal)	$492,253	$670,565
City of Wanneroo (Strategic Project Reserve)	$0	$520,953

It should be noted that to date $92,232 has been spent on PR-2253 Yanchep District Open Space Sports Amenities Building with the required balance of funding to be listed within the draft 2016/17 Capital Works Budget (PR-2253).

As a consequence, Administration will seek to update the current 2016/17 Capital Works Budget to reflect the revised funding model, taking into consideration funds already spent in the 2014/15 and 2015/16 financial years.

It should also be noted that the Landowners are currently not in a position to contribute their portion of the project cost ($1,438,149) and as a result, and in accordance with Yanchep Two Rocks Development Contribution Plan, the DCP will need to borrow these funds. This will come via a loan negotiated by the City costs of which including on-going interest expense, will be charged to the DCP.

Voting Requirements

Simple Majority

Recommendation

That Council:-

1. AGREES to the following revised funding model for project PR-2253 Yanchep Active Open Space New Sports Amenities Building (Construction), based on the outcome of consultations with the Yanchep Two Rocks Developer Contribution Technical Advisory Committee:

Original DCP (as at April 2015)		Option B
Total Cost	$1,930.402	$3,400,000
Developer (loan)	$1,438,149	$1,438,149
DSR Grant	$0	$770,333
City of Wanneroo (Municipal)	$492,253	$670,565
City of Wanneroo (Strategic Project Reserve)	$0	$520,953

2. NOTES that Administration will amend the current budget listing within the draft 2016/17 Capital Works Budget for project PR-2253 Yanchep Active Open Space New Sports Amenities Building (Construction) to reflect the revised project funding model and taking into consideration funds already spent in the 2014/15 and 2015/16 financial years;

3. SUPPORTS the finalisation of the Yanchep Active Open Space Sports Amenities Building design and tender documentation based on the concept included within Attachment 1, with the following minor design changes included:

Design Change	Description
Bin Store	Removal of Bin Store (3m²)
Kitchen / Kiosk	Removal of Kitchen Store (15m²) and reduction of Kiosk size (less 3m2)
Roof	Simplification of roof design and reduction in roof size by 901m²
Retaining Walls and Stairs	Removal and to be placed within landscaping budget (subject to final landowner agreement).
Concrete paving	Reduction of concrete paving by 565m²
Brick Paving	Removal.
Landscaping	Removal and to be placed within landscaping budget (subject to final landowner agreement).

4. NOTES that Council’s decision in respect to the funding model for this facility as part of Recommendation 1 above will inform the annual review of the Yanchep Two Rocks Development Contribution Plan; and

5. NOTES that Administration will inform relevant user groups of the Council decision.

Attachments:

1 .	Concept Plan - Yanchep Active Open Space Sports Amenities Building	15/590138	Minuted
2 .	Agenda and Minutes of Yanchep -Two Rocks Development Contribution PLan Technical Advisory Committee Meeting - 5 April 2016	16/170591
3 .	Agenda and Minutes of Yanchep -Two Rocks Development Contribution PLan Technical Advisory Committee Meeting - 13 May 2016	16/170596

CE01-05/16 Value Capture Proposal for the Extension of the Northern Railway Line to Yanchep

File Ref: 23578 – 16/172257

Responsible Officer: A/CEO

Disclosure of Interest: Nil

Attachments: 2

Issue

To consider supporting and advocating a value capture proposal to secure the timely provision of rail to Yanchep.

Background

The City of Wanneroo is one of the fastest growing metropolitan corridors in Australia with population projections for the North West coastal corridor (Tamala Park to Two Rocks) indicating that by 2020 at least 95,000 residents will be residing in the corridor alone and by 2031 it is estimated that the population will reach 150,000. Not only is the population growth significant but the geographical area of this coastal corridor being 135 km² which equates to 128% the size of City of Stirling and 136% the size of City of Joondalup. Yanchep is identified as a Strategic Metropolitan Centre in the northern corridor, and is located 48 km from Perth CBD.

Yanchep Structure Planning

The importance of major transport infrastructure to Yanchep as a future City centre was recognised through the Saint Andrews Strategic Cooperation Agreement between the State Government of Western Australia, Tokyu Corporation, Western Australian Planning Commission, Yanchep Sun City Pty Ltd and the City of Wanneroo.

This agreement sought to deliver around 55,000 serviced residential lots with a population of some 148,000 with a regional strategic commercial centre that created significant employment. The agreement recommended that the development should proceed in a manner which;-

· Is environmentally, socially and economically sustainable;

· Recognises and uses world best practice in urban design wherever possible;

· Accords with relevant State and Local Government policies; and

· Places a high priority on the encouragement of public transport use.

Administration anticipates that the draft Yanchep City Centre Structure Plan will be presented to Council for consideration in mid-2016. The Yanchep City Centre Activity Centre Structure Plan covers 106 hectares of land. It will provide for the extension of the underground rail line through the City Centre with a centrally located station which will form an integral transport connection for the catchment area and for the future centres to the north and south. It will incorporate a bus interchange and potentially light rail. The draft Yanchep City Centre Structure Plan consists of four precincts accommodating a diverse mix of land uses. These are city centre core; business mixed use and education precinct; tertiary education precinct and a sport and health precinct.

Council’s Advocacy Position

Council at its Ordinary Council Meeting on the 22 July 2014 adopted the City’s Advocacy Plan with a primary objective to advocate for and promote key strategic priorities and projects within the City of Wanneroo and the North Metropolitan Sub-Region to the State and Federal Governments, government agencies and stakeholders to:

· Secure funding support; and/or

· Influence or support policy development, change or review; and/or

· Promote the Region in a State, Federal and International context.

The adopted Advocacy Plan included the Advocacy Statement, Advocacy Strategy and four position statements, one of which was the Position Statement: Expansion of the Northern Suburb Rail Network, asking the State Government to commit to expanding the heavy and light passenger rail network in Perth's North-West Sub-Region.

As a result of the above, the Mayor and Chief Executive Officer (CEO) have been proactive in advocating at a State and Federal level with both government and key stakeholders for the needs of our community across several key projects including:

· Provision of rail to Yanchep by 2020

· Extension of the Mitchell Freeway to Romeo Road

· Purchase of regional active open space land acquisition by the State Government

· Investment in employment generating infrastructure and activities.

The level of intensity of the advocacy campaign by the Mayor and CEO has increased significantly in the past 6 months such that the awareness of City of Wanneroo requirements are now well understood by relevant Ministers in both State and Federal governments.

State and Federal Government Positions

Recently there has been policy development within both State and Federal Government about the need for partnerships between governments and the private sector to deliver infrastructure sooner and within budget constraints.

The Australian Government through its Smart Cities Plan highlights that for cities to succeed in the 21^st century economy our cities need to be productive and accessible, but they also need to be livable with a clear focus on serving their citizens. Smart Investment that enables partnerships between governments and the private sector will deliver better infrastructure sooner, and within budget constraints.

Contained within the Smart Cities plan is the concept of City Deals which as indicated in the plan may include:

· Targeted initiatives to strengthen existing or emerging economic hubs

· Transport infrastructure funding or financing

· Housing supply and planning changes

· Changes to regulatory and zoning arrangements

· Investment that improve environmental outcomes

· Maximising benefits from underutilised State and Commonwealth land

· Integrating environmental criteria into decision making

This plan in turn, has generated interest within the landowner group at Yanchep and Alkimos/ Eglington and has created an opportunity for the Yanchep Beach Joint Venture (YBJV) to represent to government a business case for the extension of the rail to Yanchep.

Detail

As a result of the level of interest expressed by the landowner group, the Mayor and the CEO arranged a meeting of key stakeholders including the key landowners together with the Director General of the Department of Transport at the Urban Development Institute of Australia (UDIA) on 13 May 2016.

The landowner group has established a strong interest to work together to facilitate the early provision of rail to Yanchep through the development of a value capture model. During the meeting YBJV representatives provided a high level overview of the proposal they had previously submitted to government and provided options on how the remaining landowner group could be included in their proposal. The land owner group agreed they would explore a funding model based on a broad principle of the estimated cost of the rail extension being shared one third by the State Government, one third by the Federal Government and one third by the landowner group (based on a fair and equitable sharing of costs in regards to this proportion).

According to correspondence dated 17 September 2013 (refer to Attachment 1), Yanchep Beach Joint Venture (YBJV) presented a proposal (titled Proposal 1) to the Public Transport Authority (PTA) outlining an offer from that entity of a $120 million cash and in-kind offer. The proposal also states that, based on value capture principles, YBJV will deliver an undergrounded Yanchep Station and a range of supporting infrastructure including car parking. It further states that land was previously ceded to the PTA in addition to the $120M offer cited. The offer was also made conditional on there being no intervening stations between Butler and Yanchep for a minimum period of five years. The rationale behind including this time period is that it will allow the best chance to deliver strong economic development and employment outcomes in Yanchep.

As a result of the 13 May 2016 discussion between landowners and key government agencies, a new proposal (titled Proposal 2) was also presented in the YBJV letter to the City of Wanneroo (Attachment 1). This proposal acknowledges that despite potential challenges and shortcomings, working with land developers in Alkimos and Eglinton on a joint proposal is also an option worthy of consideration. The proposal acknowledges the possibility of every developer working toward, and agreeing, a model underpinned by an equal three-way contribution split between the WA State Government, the Australian Federal Government and all of the northern corridor landowners including YBJV.

In a separate letter dated May 20 (refer to Attachment 2), 2016 addressed to the City of Wanneroo, the ‘Participating Northern Corridor Landowners’ group including Landcorp, Eglinton Estates and PEET registered their support to work together with the appropriate levels of government to fund the extension of Perth’s northern rail to Yanchep through value capture. The group agrees with the view that the accelerated delivery of rail through to Yanchep including stations at Alkimos, Eglinton and Yanchep could ensure the development of vital and viable centres as cited in the West Australian Planning Commission’s (WAPC) Perth and Peel @ 3.5Million framework plan. They acknowledge the hierarchy of centres within the northern corridor and the link of infrastructure provision to economic activation and employment generation. The northern corridor landowners provide in principle support for a public private funding model and acknowledge that this requires further investigation and stakeholder clarification.

The three Alkimos Eglinton Landowners have all resolved to participate with both State and Federal Governments to consider value capture proposal for this extension. The landowners understand that this concept requires detailed analysis to be undertaken by the key stakeholders in good faith to ensure that the final agreement to extend the rail is fair and equitable to all parties.

The landowners are committed to building the initial work previously undertaken by the PTA by promoting, with the help of the City, how a value capture proposition may be used to facilitate the delivery of this key piece of infrastructure on an accelerated timeframe in partnership with the State and Federal Governments.

In the first instance, the landowners request that the City facilitate a meeting with the State Minister for Transport, with representation from the landowners to further consider how this proposal may progress.

Consultation

The Mayor and Chief Executive Officer have been in consultation with Federal and State Government to promote the City’s Advocacy Plan. The City has also met with key landowners in the coastal growth corridor. As referred to above they also arranged a meeting with key stakeholders at the UDIA’s offices on the 13 May.

Comment

Yanchep is identified as a Strategic Metropolitan Activity Centre in State Planning Policy 4.2 – Activity Centres for Perth and Peel. The other centres in this higher order category are Rockingham, Armadale, Morley, Fremantle, Mandurah, Joondalup, Midland, Cannington and Stirling. Unlike the Yanchep rail extension, other potential State Government heavy rail proposals, including the proposed Cockburn to Thornlie rail link, will not deliver rail to a new Strategic Metropolitan Centre.

Alkimos is identified is as a Secondary Centre and Eglington is identified as a District Centre in State Planning Policy 4.2.

Early delivery of rail to Yanchep will deliver a number of benefits:

· The economic development activation of the first stage city centre of Yanchep due to a heavy rail extension from Butler to Yanchep, including a station at Yanchep, will catalyse significant opportunities for the City of Wanneroo. As the designated highest order centre for Wanneroo, delivery of passenger rail will allow the first stages of tertiary and technical trades education, commercial development including regional and district scale retail, public and private hospital facilities, civic facilities including libraries, museums and performing arts, and coastal recreation and tourism opportunities. It will also provide certainty for the structure planning requirements for transit oriented development. The broadening of the Wanneroo economy and strengthening of the local supply chain will assist local people looking to work locally.

· With the growing communities in the Alkimos/Eglinton and Yanchep/Two Rocks regions, it is vital that demand for public transport increase mode share from 9% to 15% causing a decrease in car usage for journey to work options. Behaviour modification in the movement economy will also stimulate new and innovative transport modes in the Yanchep city centre. Certain key principles to assist in the delivery of 50,000 jobs in Yanchep over time include supportive transit friendly built form and main street developments. The creation of activated piazzas and opportunities for day and night activation will provide the best opportunity for a truly mixed use and integrated city centre capable of delivering a sustainable range of employment for local people.

· Provision of an incentive and catalyst for developers of land near to the proposed stations to plan and deliver more intensive and diverse land uses, to support local employment and create vibrant, high density residential areas. Without such early construction of the railway, there is a risk of continuation of low to medium density residential suburbs being developed in the future station precinct areas.

· Provision of an incentive for international investment to activate the early stages of the planned Yanchep City Centre, and for joint venture finance to bring on economic activities in the proposed Alkimos and Eglinton centres.

This will assist achievement of early job targets which will in turn reduce congestion on the sub-region’s transport systems by reducing commuter movements to jobs to the south.

· Incentive to increase the supply of developed housing land in an area which can be regarded as ‘well-located’ through the provision of the railway. This increase in supply should in turn reduce residential land prices and consequently improve housing affordability. (Ref: speech by Philip Lowe, Deputy Governor of the RBA, 54R Shann Memorial Lecture, UWA, 12 August 2015).

Infrastructure Australia reported in the Australian Infrastructure Audit, 2015, that the northern corridor of Perth is projected, in the absence of additional capacity, to become the most congested corridor in Perth by 2031. It found that congestion is expected to be driven by strong population growth in the North West sub-region (averaging around 5.2 per cent per annum). The increase in road demand, and road congestion, is expected to be matched by strong growth in demand for public transport. As a result of this finding, Infrastructure Australia in the Australian Infrastructure Plan 2016 identified the Perth CBD – North Corridor Capacity Project as the only high priority initiative for Western Australia. It recommended that a number of approaches could be adopted to increase supply and to manage demand, including additional road capacity, mode shift to public transport or better use of existing roads. The extension of the rail to Yanchep would improve mode share shift to public transport.

The Department of Transport’s draft Public Transport for Perth in 2031 released in 2011 had the rail extension to Yanchep with stations at Alkimos, Eglinton and Yanchep to be delivered as part of the stage one projects before 2020. It was identified as a “transformational” project. However, the Department of Planning’s draft North-West Sub-regional Planning Framework (released as part of the Perth and Peel @ 3.5 million strategic documents in 2015) has the extension of the rail from Butler to Yanchep as required post 2025. Council in its submission on the draft document recommended that the State Government reinstate the 2020 timeframe.

It is evident that the importance of rail to Yanchep is not in dispute. The key issue is the timing of the investment in this essential infrastructure.

Due to the benefits that investment in rail will have to the north west growth corridor in terms of employment generation, reduced travel time to employment centres and releasing opportunities for new investment, land within the corridor and around the stations should become more valuable and it is this increase in value uplift that a value capture model seeks to access to help finance the rail infrastructure costs.

The value capture model presented by the land owner group represents a unique opportunity for all parties concerned to secure the timely provision of rail to Yanchep and as a result it is recommended that Council consider endorsing this proposal for the purpose of incorporating within our advocacy campaign.

The YBJV Proposal 1 is an offer of $120m cash and in kind to deliver an underground Yanchep Station and a range of supporting infrastructure including car parking. Based on a value capture model, this may assist the government in the early delivery of rail to Yanchep. It is the only financial offer provided to Government for its consideration at this point in time.

Therefore Administration recommends that this is the only option Council should be advocating for at this point in time.

It is, however, acknowledged that the landowners will continue to work together towards a fair and equitable distribution of costs to provide rail to Yanchep including stations at Alkimos, Eglington and Yanchep. Administration recommends that this be encouraged and will work the relevant stakeholders to assist.

The City also acknowledges and appreciates all landowners’ commitment to the northern coastal corridor and working with the City on a shared vision.

In addition to our advocacy role it is also recommended that Council review the timing and provision of local government community infrastructure within the corridor as a result of the delivery of rail to support the City Centre development, community attractiveness and activation. This review will be part of the ongoing review of the City’s Long Term Financial Plan.

Statutory Compliance

Nil

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2013 – 2023:

“4 Civic Leadership - Working with others to ensure the best use of our resources.

4.2 Working With Others - The community is a desirable place to live and work as the City works with others to deliver the most appropriate outcomes.”

Risk Management Considerations

Risk Title

Stakeholder relationship

Risk Rating

Moderate

Accountability

Chief Executive Officer

Action Planning

Manage

Risk Title

Integrated Infrastructure and Utility Planning

Risk Rating

Moderate

Accountability

Executive Leadership Team

Action Planning

Manage

The above risks relating to this issue is identified and considered within the City’s existing Strategic Risk Register. The City’s risk in regard to either of the above is limited as the City’s role is to advocate only.

Policy Implications

The provision of rail to Yanchep is embedded in the City’s Advocacy Strategy and is aligned to both State and Federal Government strategy and policy relating to public transport and city development.

Financial Implications

Council has allocated funds to support its advocacy campaign.

As part of the City’s long term financial plan consideration will be given for timely provision of infrastructure in the coastal growth corridor.

There are no other costs to the City in advocating this proposal and the City does not need to be involved in negotiations of the cost sharing.

Voting Requirements

Simple Majority

Recommendation

That Council:

1. SUPPORTS the value capture model Business Case by Yanchep Beach Joint Venture Proposal 1 to bring rail to Yanchep as detailed in the letter included at Attachment 1 and incorporate this in to the City’s Advocacy Campaign at this point in time;

2. ENCOURAGES the Yanchep Beach Joint Venture and the Alkimos/Eglinton landowners to continue to work together towards a fair and equitable distribution of cost to provide rail to Yanchep, including stations at Alkimos, Eglinton and Yanchep; and review the City’s advocacy position when this concluded; and

3. SUPPORTS the Mayor and Chief Executive Officer to advocate at both State and Federal level including meeting with relevant Ministers in Perth and Canberra, to secure support for Proposal 1.

Attachments:

1.	YBJV-COW Railway Proposal Final 190516	16/173396	Minuted
2.	Letter of Intent to Mayor Roberts 20 5 2016 Signed to CoW - Alkimos Eglinton Land Owners	16/174584